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Invesco Perpetual Latin American Fund

September 2017 (Content as at 31 August 2017)

Overview

Objective

The Invesco Perpetual Latin American Fund aims to achieve capital growth in Latin America. The fund intends to invest primarily in shares of companies in South and Central America (including Mexico) and the Caribbean, although it may include other Latin American related investments. In pursuing this objective, the fund managers may include investments that they consider appropriate which include transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments and transactions as detailed in Appendix 2 of the most recent Prospectus.

Fund strategy

Our holdings in Latin America are concentrated in Brazil and Mexico. We also have significant positions in companies based in the smaller economies of Colombia, Chile and Peru. The fund’s diversified approach is reflected in sector positioning, which is spread across a broad range of industries. We believe that stock selection is the key to performance and that the region still offers, in our view, attractive opportunities for stock picking. We are finding consumer discretionary and energy-related stocks particularly interesting.

Fixed interest roundtable Q&A: where next for bond markets?

Video

15 July 2015

Invesco Perpetual Fixed Interest team

In this live roundtable with fund managers from our Fixed Interest team, they discussed key issues including whether the Greek debt crisis matters for bond markets and the current macroeconomic backdrop.

Market commentary

Equity performance in Latin America was mixed with gains in Peru, Colombia and Mexico being offset by weakness in Brazil. Sentiment towards the latter was dented by concerns that the country’s economic recovery could be undermined following allegations of corruption against President Temer. The fresh political scandal in Brazil comes at a time when the economy is finally showing signs of expansion after being in recession for the past couple of years. The economy grew by 1% during the first three months of 2017 compared to the previous quarter. With the annual inflation rate falling to 4.1%, Brazil’s central bank reduced interest rates from 11.25% to 10.25%. Interest rates were also lowered in Chile – down 25 basis points to 2.50% - and in light of moderating inflation, cut to 6.25% from 6.5% in Colombia. By contrast, Mexico raised their benchmark interest rate by 25 basis points to 6.75%, its highest level in eight years.

Key facts
Product type ICVC
Launch date 05 November 1994
Fund size £183.08m
Historic yield 1.61%
Sector IA Specialist Sector
Available in an ISA? Yes

Fund manager

Nicholas Mason

Title: Fund Manager
Team: Invesco Perpetual - Emerging Market Equities

Dean Newman

Title: Head of Emerging Market Equities
Team: Invesco Perpetual - Emerging Market Equities
Fund details
Fund currency GBP
Trading frequency Daily
Accounting period ends 28 February
31 August
Share types
SEDOL ISIN
Accumulation 3302770 GB0033027706
Income 3304828 GB0033048280
Accumulation (No Trail) B3RW8X8 GB00B3RW8X82
Income (No Trail) B3RW8Y9 GB00B3RW8Y99
Y (Acc) BJ04JG3 GB00BJ04JG36
Y (Inc) BJ04JH4 GB00BJ04JH43
Z (Acc) B8N44B3 GB00B8N44B34
Z (Inc) B8N44C4 GB00B8N44C41
Investment levels
Minimum lump sum £500

Performance

Charges

One-off charges taken before you invest

Entry charge

The entry charge for the fund is up to 5%. This is the maximum that might be taken out of your money before it is invested. For example, if you invest £1,000, an entry charge of 5% means £950 of your money will be used to buy shares in the fund.

The entry charge covers the costs of setting up your investment.

If you invest through a third party (such as a financial adviser), but do not receive financial advice on your investment, this charge may include payments to that third party. For more details see "What share classes are available for your ICVC funds?".

Exit charge

There is no exit charge for the fund.

Charges taken from the fund over a year

Ongoing charge

The ongoing charge figure is based on a fixed, all-inclusive fee and excludes portfolio transaction costs. The ongoing charge for each share class can be found in the relevant Key Investor Information Document available under 'Literature'. Investors will be provided with advance notice if any increases to this figure occur.

The ongoing charge covers all aspects of operating the fund during the year, including fees paid for investment management, administration and the independent oversight functions.

If you invest through a third party (such as a financial adviser), but do not receive financial advice on your investment, this charge may include payments to that third party. Once invested, your contract note or acknowledgement letter will show the amount of any payment in cash terms. For more details see "What share classes are available for your ICVC funds?".

Charges taken from the fund under specific conditions

Performance fee

No performance fee is charged.

Portfolio transaction costs1

On average, over the last three financial years, the fund incurred broker commissions of 0.20% and transfer taxes of 0.01%, as a necessary part of buying and selling the fund's underlying investments in order to achieve the investment objective. A proportion of these costs is recovered directly from investors joining and leaving the fund.

When the fund buys or sells shares, broker commissions and transfer taxes are paid by the fund on each transaction. In addition, there is a dealing spread between the buying and selling prices of the underlying investments. Unlike shares, other types of investments (such as bonds, money market instruments and derivatives) have no separately identifiable transaction costs; these costs form part of the dealing spread. Dealing spreads vary considerably depending on the transaction value and market sentiment. The estimated average dealing spread for the fund is 0.23% of the transaction value.

Comparing portfolio transaction costs for a range of funds may give a false impression of the relative costs of investing in them, for the following reasons:

  • Transaction costs do not necessarily reduce returns. The net impact of dealing is the combination of the effectiveness of the manager's investment decisions in improving returns and the associate costs of investment
  • Historic transaction costs are not an effective indicator of the future impact on performance
  • Transaction costs for buying and selling investments due to other investors joining or leaving the fund may be recovered from those investors. For further information see Pricing policy note below
  • Transaction costs vary from country to country
  • Transaction costs vary depending on the types of investment in which a fund invests
  • As the manager's investment decisions are not predictable, transaction costs are also not predictable

Pricing policy note1

We operate a single pricing methodology for this fund and reserve the right to adjust the fund's price to protect your investment from the costs of buying and selling investments that result from other investors joining or leaving the fund. The amount of any such adjustment is calculated by reference to the estimated costs of dealing in the underlying investments, including any dealing spreads, broker commissions and transfer taxes.

Typical adjustments to the fund's price are to increase it by 0.39% for net inflows or decrease it by 0.38% for net outflows.

We usually adjust the price to the maximum extent possible when the value of net contributions or withdrawals is significant, which helps to protect your investment from the costs of the resultant transactions.

1The fund's financial year end is 31 August 2016. Figures in these sections are as at 31 August 2016.

Holdings

 

Literature

Factsheets

Invesco Perpetual Latin American Fund Factsheet  (284 KB)

KIIDs

Invesco Perpetual Latin American Fund KIID acc  (196 KB)

Invesco Perpetual Latin American Fund KIID acc (No trail)  (196 KB)

Invesco Perpetual Latin American Fund KIID acc (Y)  (194 KB)

Invesco Perpetual Latin American Fund KIID acc (Z)  (194 KB)

Invesco Perpetual Latin American Fund KIID inc  (196 KB)

Invesco Perpetual Latin American Fund KIID inc (No trail)  (196 KB)

Invesco Perpetual Latin American Fund KIID inc (Y)  (194 KB)

Invesco Perpetual Latin American Fund KIID inc (Z)  (194 KB)

Application form

ICVC & ISA Application booklet 17/18  (190 KB)

Product & fund information

ICVC Supplementary Information Document (SID)  (1 MB)

Financial reports

Invesco Perpetual American Investment Series Interim Report 2015 (Short Report)  (160 KB)

Invesco Perpetual American Investment Series Annual Report 2014 (Short Report)  (167 KB)

Invesco Perpetual American Investment Series Interim Report 2015 (Long Form)  (299 KB)

Invesco Perpetual American Investment Series Annual Report 2015 (Short Report)  (156 KB)

Invesco Perpetual American Investment Series Annual Report 2015 (Long Form)  (436 KB)

Invesco Perpetual American Investment Series Interim Report 2017 (Short Report)  (260 KB)

Invesco Perpetual American Investment Series Interim Report 2017 (Long Form)  (482 KB)

Invesco Perpetual American Investment Series Interim Report 2016 (Short Report)  (184 KB)

Invesco Perpetual American Investment Series Interim Report 2016 (Long Form)  (287 KB)

Forms

ISA Additional Permitted Subscription application form  (69 KB)

Brexit – the pros and cons

Article

04 August 2015

John Greenwood, Chief Economist, Invesco Ltd

The British public will soon have a chance to vote in the “in-out” referendum on continued membership of the European Union? Will the economic benefits of staying in the European project outweigh the costs? If the UK does decide to leave, what are the options available?

What lies ahead for global emerging equity markets?

Article

11 February 2016

Dean Newman, Head of Emerging Equity Markets, Invesco Perpetual

Concerns over global growth, weaker oil prices and negative interest rates in Japan have made it an eventful start to the year for financials markets. Are emerging markets immune to these wider developments?

Life outside the office – a trip to the Amazon basin

Article

22 July 2016

Jonathan De Vos, Senior Analyst, Emerging Equity Markets, Invesco Perpetual

Reaching the site of Brazil’s largest copper deposit in a remote part of the country proved a challenge but it was all worth it in the end, according to Jonathan De Vos.

Investment risks

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Past performance is not a guide to future returns.

The fund invests in emerging and developing markets, where there is potential for a decrease in market liquidity, which may mean that it is not easy to buy or sell securities. There may also be difficulties in dealing and settlement, and custody problems could arise.

The fund may use derivatives (complex instruments) in an attempt to reduce the overall risk of its investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of the fund. The Manager, however, will ensure that the use of derivatives within the fund does not materially alter the overall risk profile of the fund.

Important information

Yield and performance figures are based on the z (accumulation) share class. As this was launched on 12 November 2012, for the periods prior to this launch date, performance figures are based on the accumulation share class, without any adjustment for fees. Performance figures for all share classes can be found in the relevant Key Investor Information Document.

All fund portfolio figures are as at date shown (source: Invesco Perpetual).

Performance figures are shown in sterling, inclusive of reinvested income and net of the ongoing charge and portfolio transaction costs to date shown. The figures do not reflect the entry charge paid by individual investors. Benchmark performance is calculated on an equivalent basis (source: Lipper).

The Historic Yield reflects distributions declared over the past twelve months as a percentage of the mid-market price of the fund, as at the date shown. It does not include any entry charge and investors may be subject to tax on their distributions.

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. This marketing material is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.

For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the Annual or Interim Short Reports and the Prospectus, which are available using the contact details shown.